Performance and reward management Assignment Example | Topics and Well Written Essays - 3000 words

Performance and reward management - Assignment Example The challenge to any organisation is to formulate a fair reward system that can motivate employees to work with enthusiasm. In the present context, implementation of proper incentive system along with well defined performance appraisal system is primarily convened by HR personnel. Reward management is important in order to achieve organisational strategies, to build up the psychological bond with employees and to act in accordance with legislation. Reward management is related with performance appraisal of an organisation as it motivates employees to perform better day-by-day. Performance appraisal is the other tool to measure performance of employees which increases motivation level and determines the training needs among others. By implementing reward system in an organisation and recruiting the best talents of the industry and by retaining the top performers’, competitive advantage can be maintained. ... Employees are the backbone of any organisation and an organisation has to pay a substantial amount to the employees for rendering services. While facing cost pressures, organisations are bound to implement major cost saving measures by cutting the jobs of the employees. Consequently, it affects on the service quality of organisations. Organisations may face unforeseen circumstances. Organisations have to implement strategies incredibly decisively so that it does not hamper the operations. Otherwise, it may be detrimental for the organisation for long-term period. The influence of downsizing can not be kept away totally but it can be reduced. By reducing the cost, managers facilitate the organisation to generate profitability. Downsizing of employees affects a company in social as well as economic perspective. As after downsizing employees face tremendous challenge to survive. A company must consider the available alternatives and calculate the feasibility with applicability of cost-r eduction options before deciding on layoffs (Gandolfi, 2008). Cost reduction stages are framed by the assumption of certain periods of time to make cost adjustments which affect the HR practices. Short Range Cost Adjustments: The primary stage of the ‘cost-reduction framework’ signifies ‘short-range cost adjustments’ in order to arrest a short-term decline in business operations. The business slowdown is anticipated to be a period for six months. Companies face such type of challenges by virtue of sudden decline of sales (Gandolfi, 2008). Framework of Cost-Reduction Stages Source: (Gandolfi, 2008). The preliminary cost-reduction techniques must allow an organisation to focus on its activities in a cost-sensitive approach for an immediate improvement. The top management has to